The Nigerian presidency has rejected the proposal for a “controlled floatation” of the naira, arguing it would replicate the economic policies of former Central Bank Governor Godwin Emefiele and exacerbate existing challenges. This statement comes in response to comments by former Vice President Atiku Abubakar, who criticized the current administration’s economic policies, particularly the recent exchange rate unification.
In a statement released on Sunday, titled “Once again, former Vice President Atiku Abubakar got it wrong,” the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, outlined the government’s position. He argued that a controlled floatation, a policy previously employed by Emefiele, would not only fail to prevent further devaluation but also fuel financial malpractices like arbitrage, ultimately harming the economy.
Onanuga’s statement further criticized Atiku Abubakar’s recent comments regarding the government’s economic policies, particularly the unification of the exchange rate. He accused the former Vice President of making inaccurate and misleading claims, suggesting that the policy was implemented hastily and without proper consultation.
The Presidency said, “Atiku’s alternative of a controlled floatation of the naira is similar to the policy of Godwin Emefiele when an estimated $1.5bn was spent monthly to shore up the naira, while arbitrage or round-tripping went on unhindered. Sadly, it was perpetrated by people close to the corridors of power.”
Citing Tinubu’s plea to governors to allow the CBN to work and his stance not to establish a commodity board, he said, “We expected Alhaji Atiku to praise President Tinubu for maintaining this stance and for not interfering with the business of Central Bank.
“It is false and preposterous for Atiku to claim that CBN’s FX management policy was hurriedly put together without proper plans and consultations with stakeholders and that the apex bank is hamstrung by Tinubu’s government in implementing a sound FX Management Policy’ that would have dealt with such issues as increasing liquidity, curtailing/regulating demand, dealing with FX backlogs and rate convergence.’
“Contrary to former VP Atiku’s claim, Cardoso’s CBN is implementing a raft of policies to stabilise the naira and end volatility in the market and this is already yielding some positive results,” he added.
